The news this morning gravitates towards yesterday's bloodbath witnessed on the US and UK stock exch...
The news this morning gravitates towards yesterday's bloodbath witnessed on the US and UK stock exchanges. The four key world economies, Europe, the US, Japan, and Asia are all threatened. The Telegraph remarked that markets tumbled across the globe yesterday as the economic slowdown in the US began to bite. In London, profit warnings from British companies with American exposure helped push the FTSE 100 index of leading shares down 225.9 to 5314.8, its biggest one-day points loss since the crash of October 1987.
The Guardian declared that the bears had mauled Wall Street, adding that three days of turmoil in the US market had sent panicked American investors racing for the exits yesterday, pushing the US stock market deep into bear territory. The market rout, which began last year with the crash in technology stocks, has now infected 30 of the biggest and best-known companies in the US.
Elswhere, the Financial Times led with a report that the UK's central bank has been challenged in a £1bn legal action over BCCI. It said the Bank of England is to face an unprecedented challenge to its reputation after the UK's highest court gave the go-ahead for it to be sued for up to £1bn ($1.4bn) by the liquidators of the collapsed Bank of Credit and Commerce International.
The Financial Times also noted that European Union finance ministers, on Thursday night, settled their dispute with the European Commission over the Lamfalussy report on securities market legislation. This enables EU leaders at their summit meeting on Friday to give a significant boost to the goal of creating a single market in financial services by 2005 at the latest.
The Independent said the euro faces its "moment of truth" as shares across the world continued to fall. As the euro fell below the psychologically important barrier of 90 cents, the European Commission said the currency could come under further strain if EU leaders failed to grasp the nettle of economic reform at the Stockholm summit, which starts today.
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